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Hyundai wins DoC reprieve

Hyundai, one of the Korean companies fighting US antidumping measures, has gained a reprieve from the US Department of Commerce (DoC).

The US arm of Hyundai Electronics has received a letter from the DoC, admitting 'an error in the computer program used to calculate the preliminary results of the 1996-1997 administrative review' of its antidumping order for DRam memory chips.

According to US reports, the DoC conceded that the error had resulted 'in an overstatement of Hyundai's antidumping margin'. The DoC is expected to produce a reduced margin for the company in a few months, after a review.

The admission was seen as a sign to other Korean companies that the US was prepared to be more relaxed over its antidumping measures. Companies are attempting to fight off the US rules via the World Trade Organisation.

Korean companies are also under attack from a European consortium of memory manufacturers, led by Siemens, which wants the EU to investigate alleged instances of antidumping.

In a statement issued by Hyundai, the company maintained that because product development costs are high, then 'it is the very nature of this industry to sell components, and particularly memory circuits, below fully loaded cost in the early part of the market lifecycle. But then the costs drop rapidly, leading to profitability. This is not dumping.'

Meanwhile, Toshiba has confirmed that it will transfer most of its memory fabrication to Taiwan, following a similar move by Fujitsu this week and Hitachi's announcement of phased withdrawal from DRam last week.